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University Quality and Graduate Wages in the UK

  • Iftikhar Hussain
  • Sandra McNally
  • Shqiponja Telhaj

We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate measure. Our findings suggest a positive return to university quality with an average earnings differential of about 6 percent for a one standard deviation rise in university quality. However, the relationship between university quality and wages is highly non-linear, with a much higher return at the top of the distribution. There is some indication that returns may be increasing over time.

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Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0099.

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Date of creation: Mar 2009
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Handle: RePEc:cep:ceedps:0099
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  1. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
  2. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," LSE Research Online Documents on Economics 19477, London School of Economics and Political Science, LSE Library.
  4. Stacy Berg Dale & Alan B. Krueger, 1999. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," NBER Working Papers 7322, National Bureau of Economic Research, Inc.
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